Manchester project adding office to the mix

Whether you are looking to sell your multifamily property or want to validate raised rates for the asset, you’ll want to increase the value of the property. Let’s take a look at six creative ways to increase the value of your multifamily property.

Perform Repairs and Make Improvements

If your multifamily property needs to be modernized or needs cosmetic work, by performing these tasks, you can significantly raise the rent. The rental income from outdated units will land somewhere in the middle of modern rent prices and those from its original era. An upgraded unit can fetch market rates. Consider painting the property’s exterior and upgrading the leasing center as well as the units. This is going to be the most effective way to increase the value of the property.

Increase the Rentable Square Footage

If there are common areas on the property, it can be tough to catch the true value of these in the rent. Increasing the area of rentable square footage can result in a higher total rental income. Many renters would prefer having larger units than extra common areas.

Subdivide or Combine Units

If the property is not the right size or configuration to adhere to the current demographics in the market is located in, you can add value to the property by subdividing or combining units. If you have two 1,500 square foot units and the demographics in your area call for more families with children, consider combining these units to create a 3,000 square foot unit that can tailor to a four-person family. This can help decrease vacancy as well.

Reduce Property Expenses

All of the expenses that come with owning a multifamily property add up, such as advertising, insurance, lawn maintenance, accounting, legal fees, property management, licenses, and repairs. Anything that can be done to decrease these expenses without sacrificing the quality and care of your property can put money back into your pocket and increase the value of the asset.

Meter Separately

Gas, water, and electricity are all consumable resources that will be variably used by tenants. In order to maximize the value of the property, pass off these expenses as much as the market will allow in your area. If the infrastructure of your multifamily property is not metered separately, consider making it so. This submetering can help allocate expenses to your tenants fairly and take this burden off of you.

Raise Rent

If your rates are significantly below market, you may be able to bump these up when the next opportunity arises. Even a 2% or 3% annual inflationary increase will add up over the years. You can definitely raise rents if you have performed upgrades both cosmetically and with technology both in units and in common areas.

The number one goal when investing in multifamily property is to increase the Net Operating Income. These tips are ways to create value-adds that will increase the property’s worth so you can either sell or raise the rent depending on your overall goal.

The retail industry has gone through some major changes over the past few years. With the inception and subsequent explosive popularity of e-commerce, retail has been forced to adapt and overcome. However, that hasn’t stopped the sector from hearing about the menacing “retail apocalypse.” With reports of ghost town malls and bankrupt big-box stores, some real estate professionals, landlords, and investors are left to get creative when filing vacant retail space.

Though this may seem disheartening, as finding permanent successful tenants can often take months, don’t fret. There are options to monetize your empty retail space and create income in the meantime. Let’s take a look at 5 ways to do so below.

Pop-Up Shops

Pop-up shops have become increasingly popular in recent years. By offering your space to short term retail shops, your space can remain occupied and often create extreme buzz and foot traffic. If your space has common retail necessities such as wi-fi, technological capabilities, and a restroom; you can accommodate most pop-ups. The company normally will provide everything else, and advertise the location. So, advertising your space for pop-ups can help fill space and a pop-up tenant may even become a permanent one.

Event Rentals

Similar to pop-up shops, vacant space used for event rentals can be very profitable. Various opportunities such as celebrity appearances, party venues, private event hosting, and more have proven popular and profitable. For this purpose, try to keep your space neutral so that events can superficially customize the space. Be sure to check with your real estate team and local government to ensure what is allowed for your space. Additionally, if you pair up with common event services and are able to provide a list of trusted caterers, decorators, or DJs in the area, you can maintain additional appeal.

Subdivide the Space

If your space has been vacant for an increased amount of time, you may want to think about subdividing the space. This can create smaller parcels which can be leased for less, appealing to smaller, often times local, businesses. Shopping local is becoming more popular and can be extremely profitable for landlords.

Gallery Space

Traditional and non-traditional gallery spaces have become a good option to take over vacant retail space. If you have a mall or plaza it allows for a new tenant that does not pose as competition for existing retail space. Additionally, in the social media obsessed age we live in, interactive galleries such as the Museum of Ice Cream, or Candytopia have become incredibly trendy. So weather leasing to an artist who want to showcase their work, an art broker, or an interactive gallery, art spaces are a great way to fill vacant space.

Nonprofits

Renting vacant space to nonprofits are a good way to make sure your spaces are not empty. Though space is normally gifted for free, it can increase foot traffic and current tenants do not consider them as competition.

So as the retail market changes, be creative and thing out of the box when it comes to filling and monetizing vacant space!